Globalization

SEMINAR ON GLOBAL DEVELOPMENT, ECONOMIC & SOCIAL ISSUES(UHP 6013)

PREPARED BY:MOHD FARID BIN MD YUNOS (MB123034)NADZIRAH BINTI HOSEN (MB133015)RABIATUL ADAWIYAH BINTI ABD KHALIL (MB133011)YEOH WEI CHERNG (ME131053)

Globalization

• Introduction• Globalization & Survival of the Fittest Theory• Overall Benefits• Gains & Losses• Conclusion

content

Proto-worldwide

Inter-national

Globalized

Three Types of International Economic Mechanism

INTRODUCTIONWhat is GLOBALIZATION??

Is Globalization inevitable?

Are overall benefits of Globalization positive?

What are the gains and losses from Globalization?

GLOBALIZATION AND SURVIVAL OF THE FITTEST THEORY

What is Survival of the Fittest? "It is not the strongest of the

species that survives, nor the most intelligent that survives. It

is the one that is most adaptable to change"

 "In the struggle for survival, the fittest win out at the expense of

their rivals because they succeed in adapting

themselves best to their environment“

Charles Darwin

Is Globalization Survival of the Fittest?

GLOBALIZATION AND SURVIVAL OF THE FITTEST THEORY

• In the globalized world, not all countries are equal in terms of their competitive strength.

• Globalization is, in essence, world capitalism. Capitalism is the system in which the theory of the survival of the fittest is applicable - Capitalism means competition, survival of the fittest.

• Therefore, this theory also applies to globalized model of development - only the fittest benefit from globalized development. 

• The less developed countries, which at their current level of development cannot be as competitive as the highly developed capitalistic countries, are likely to find themselves in a position of free chicken close to a free fox.

“the law of competition, be it benign or not, is here; we

cannot evade it; no substitutes for it have been found; and

while the law may be sometimes hard for the

individual, it is best for the race, because it ensures the survival of the fittest in every

department”

Andrew Carnegie

During periods of economic stagnation, the winners will do what it takes to survive, even if it means encouraging policies that redistribute wealth from the poor to the rich, from the old to the banks, from the young to the old.

IS GLOBALIZATION INEVITABLE?

• Globalization is an "inevitable" or "relentless" process, which will be difficult or impossible to reverse.

• Thomas Friedman describes globalization as "brakeless train wreaking havoc" - the idea that suggest it has a relentless force, which is difficult to slow, stop, or reverse.

• The liberalization of investment, trade, production and democracy is not a cyclic process (one that comes and goes) but a secular process (one that grows stronger and endures).

"I now fear that the untrammeled intensification of

laissez-faire capitalism is endagering our democratic

society. Unless it is tempered by the recognition of common

interest.. Our present system is liable to break down. The collapse in the 1990s of

economis in Mexico, Thailand, Indonesia and Russia, which

threatened to spread economic disaster around the world, was proof that globalization is prone

to failure, critics contend.“

George Soros

Y E S !

IS GLOBALIZATION INEVITABLE?

BUT WE HAVE POWERFUL INSTITUTIONAL SUPPORT, DON’T WE?

• It is true that globalization has powerful institutional support, which has given it weight, momentum and authority.

• But these institutions – e.g: TNCs, the North Atlantic Treaty Organization (NATO), IMF, WTO - unable to anticipate, fully appreciate, or successfully manage the course of globalization in many respects - due to in part to their own institutional constraints.

• Historically, these institutions were created to address a particular set of problems - many of which no longer exist. - they were shaped by ideologies that express the views of some, but not all social groups. These ideologies do not easily accommodate the views and needs of groups that are important stakeholders in any durable solution to problems associated with globalization.

EXAMPLE:

When they negotiated a global warming accord in Kyoto, Japan, they were unable to accommodate divergent interests (North vs. South; US vs. European) and implement real solutions – Even when these institutions are proactive, open-minded and willing to address change in a collective, democratic manner

IS OVERALL BENEFIT OF GLOBALIZATION POSITIVE?

• Advantages of globalization are all-pervasive and a lot of developing countries are benefiting from it.

• The most benefit parties are coming from business communities and from those who see globalization is an opportunity.

• Larger volumes of sales and exchange, larger growth rates in GDP, and more empowerment of individuals and political systems through acquiring additional resources and capital.

• One can safely conclude that it definitely has brought the world a lot closer in terms of economic cooperation and trade.

Y E S !

Globalization has changed us into a company that searches the world, not just to sell or

to source, but to find intellectual capital - the world's best talents and

greatest ideas.- Jack Welch

Increase competition.

Investment and capital flow.

Employment. Spread of culture. Spread of education Legal and ethical

effects.

Classical & Modern Cycles of Growth of Capitalism

Classical Cycle

Recovery

Expansion

Crisis

DepressionModern

Cycle

Reform

Globalization

Income Inequality

Poverty

Globalization Process Capitalism

B A+

Income InequalityPovertyReformCapitalistic Expansion

CrisisDepressionRecoveryGlobalization

OpportunitiesGlobalization led to the increased market access, capital & technology. GDP of India increased from 3 % to 5.6% from 1970 to 1991 because of liberalization & to the peak at 7.8% in 1996-97 that improved 8th position in 1991, 4th in 2001. Last 5 years economic improvement is been of 8% and recent year 8.98%.

YEAR GROSS DOMESTIC PRODUCT

1990-91 TO 1994-95 6.14%

1995-96 TO 1999-00 6.12%

2000-01 TO 2003-04 6.40%

2004-05 TO 2007-08 8.98%

Per capita income sharp increase of 7.2% from 2003-04 to 2007-08.

GAINS

Inequality• Rising inequalities in income & wealth.• Evidence : Rise in Gini-coeeficient & a growing rural-urban divide in countries such as

China, India, & Brazil.• George Kaplan, Director of the Center of Epidemology, “Stress, emotional responses,

economic disadvantage and beleaguered neighborhoods are inter-related with health changes…. That’s part of how social inequalities become health inequalities.”

Global Burden of Disease• All countries must deal with the international transfer risks – whether microbes,

unregulated distribution of drugs, or tobacco marketing. • Due to 107 diseases, accidents and sibling sequels, disaggregated with respect to

cause, sex, age & geographical region.• Environmental Threat• High degree & intensity of environmental pollution, degradation of eco-balance,

deforestation.

LOSSES

Globalization as a concept ultimately turned into a process. Is it then a reality or merely a knowledge-economy???

Globalization should not be thought of as a solution to everything.

Those who take advantage, they flourish and those who do not they sink. Thus, globalization is not supposed to produce equality of outcome but it produces equality of opportunity for those with right mindset.

CONCLUSION

Belinda Bennett. (2006). Health, Rights and Globalisation. The International Library of Medicine, Ethics and Law. Samir Dasgupta, Ray Kiely. (2006). Globalization and After. Sage Publications. Bergman, J. (2001). Darwin’s Influence on Ruthless Laissez-faire Capitalism. Vital Articles on Science/Creation. Friedman, T. L.. (2000). The Lexus and the Olive Tree: Understanding Globalization. New York. Picador. Md. Mizanur Rahman. Impact of Globalization on Rural Development. Scholarly Research Paper. Grin Schaeffer R. K. (2003). Understanding Globalization: The Social Consequences of Political, Economic. New York. Rowman & Littlefield Publishers Inc. “Millions for Viagra. Pennies for Diseases of the Poor”, Ken Silverstein

(1999)

REFERENCES

THANK YOU